NIMBY taxes matter: the case of state hazardous waste disposal taxes

This paper links the theoretical and empirical literatures on interjurisdic tional tax and regulatory competition, focusing on the case of state hazard ous waste disposal taxes. It begins by demonstrating that local environment al taxes can be inefficient, and that the inefficiency depends on the tax e lasticity of polluters' responses. The paper then uses panel data from the Toxics Release Inventory to estimate the magnitude of the tax elasticities, and to demonstrate the empirical relevance of the theoretical inefficiency of local taxes. (C) 1999 Elsevier Science S.A. All rights reserved.